Agreement Signed for Green Hydrogen-Based Ammonia Production Facility in Oman

Muscat: OQ, Oman’s leading integrated energy group signed a joint development agreement (JDA) with the US Air Products (NYSE:APD) company and ACWA Power of Saudi Arabia toward a multibillion-dollar investment in a world-scale green hydrogen-based ammonia production facility powered by renewable energy in Oman.

The JDA signing follows a memorandum of understanding signed in December 2021.

Envisioned for Oman’s Salalah Free Zone, the joint venture project would be based on proven, world-class technology and include: the innovative integration of renewable power from solar, wind and storage; production of hydrogen by electrolysis; production of nitrogen by air separation; and production of green ammonia.

It is anticipated that the green hydrogen-based ammonia production facility would be equally owned by the project partners.

Commenting on this venture, OQ Chairman Mulham Al Jarf said, “We are proud of our partnership with ACWA Power and Air Products. This project positions OQ as an energy transition enabler, while playing on our strengths and leveraging our expertise in the downstream chemicals business, particularly in Salalah where we have extensive operations, and our demonstrated ability to off-take products and competitively deliver them to global customers. The project fits well with the Sultanate of Oman’s renewable energy strategy and fosters investments in alternative energy resources, both of which contribute to Oman Vision 2040.”

On his turn, Air Products Chairman, President and Chief Executive Officer Seifi Ghasemi, said, “We are delighted and honored to work with the government of Oman to develop this multibillion-dollar project, which would be similar to the world-scale green hydrogen project we are implementing with our partners in NEOM in the Kingdom of Saudi Arabia. We look forward to applying our know-how, technology and more than 60 years of experience in hydrogen to help move this project forward and take another significant step in decarbonizing the world.”

Meanwhile, ACWA Power Chairman Mohammad A. Abunayyan said, “As a company that is driving the transition towards a greener future through utilizing cutting-edge technologies and innovative solutions, we are extremely proud to support the Government of Oman’s ambition to pursue decarbonization and advance the development of green hydrogen, considered to be the fuel of the future. Our investment in developing and building water desalination and power production plants in Oman started in 2011, and we continue to expand our robust portfolio in the Sultanate. Utilizing our global expertise, we were successfully able to launch Oman’s first.

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